The happenings "inside" the Wisconsin State Treasury and across the street at the State Capitol

FAQ: What happens to my 529 plan if I die or become incapacitated?


Your 529 account will not terminate; it will simply continue under a new account owner. When you establish a 529 account , the application will invite you to name a successor owner. We recommend that you make this designation, as it will allow ownership of the account to be transferred easily and automatically to your named successor. If you do not designate a successor, the new account owner may have to be decided through probate. Some 529 plans have rules of succession to determine the successor owner in the event you have not named someone.

You should realize that a successor owner assumes all the rights of the original owner, including the right to request a refund. You must have confidence that the person you name as successor will fulfill your desires for the use of the 529 account. If you have any concerns about this, speak with your attorney about the possibility of naming a trust as successor.

 

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